How to Become a Buy to Let First Time Buyer?

Let First Time Buyer

First-time buyers are excited about purchasing a buy to let. What they do not know is that this process is challenging and time-consuming. Lenders take into consideration various aspects when deciding whether to approve such a loan or not. Individual circumstances play an essential part in this process. To avoid being rejected by lenders, a buy to let first time buyer should seek professional advice. 

How Can Professional Advice Impact a Buy to Let First Time Buyer?

It is important to have a clear understanding of how buy to let first time buyer loan works, which are the eligibility requirements, which documents should be provided, and so on. Persons who apply for such a loan for the first time are not familiar with the factors that can influence the outcome.

First-time borrowers should have the proper information and they should prepare all the necessary documents before submitting their request to a lender. Some lenders are reluctant when it comes to giving loans to first-time buyers. As a result, it is essential to benefit from professional advice to increase the chances of a successful application.

Although lenders consider first-time buyers riskier than those who already have a mortgage loan, they are willing to work with them provided they meet their criteria.

How Should First Time Buyers Prepare for A Buy to Let?

Given the fact that a buy to let is more difficult to obtain by first-time buyers, it is best to prepare for this process. Individuals who would like to obtain a buy to let first time buyer loan should:

  • Plan ahead and save money – it is important to consider how much time they need to save for the required deposit. Such a loan is not granted without a significant deposit and it is recommended to save money each month for this objective.
  • Make the most of the available resources- experienced brokers know the lenders that are willing to work with first time buyers; also, they have in-depth knowledge in this field and know where to search for the most competitive deals. 
  • Reduce unnecessary expenditure- what spending habits can be reduced? Are there any subscriptions or memberships that they pay for every month?
  • Avoid taking out any loans while saving for the deposit
  • Pay all their bills on time so that they prove to the lender they are reliable and responsible
  • Ensure their bills are registered to the current address
  • See what they can do to improve their credit score.
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What to Have Before Submitting an Application for a Buy to Let?

Becoming a landlord is more difficult than most people assume, but it is a smart investment that is worth the effort. Investing in property and renting it is a good way to have an additional income. 

As far as lenders are concerned, those who are willing to work with first-time buyers will:

  • Ask for a high deposit on the property- lenders usually ask for a deposit of 25% of the entire value of the property. 
  • Require money for the other costs involved when taking such a loan; there are fees to be paid for the valuation of the property, for the energy and gas safety certificates, for the cleaning or repair of the property should this be the case.
  • Have to pay the stamp duty tax

Securing a buy to let for the first time has various implications. The good news is that competent brokers offer assistance to ensure the success of the buy to let application of their customers. 

They know how to handle the complexities involved in this process and they will make sure no mistakes are made. Individuals who are eager to obtain a buy to let loan soon should not hesitate to contact us for professional advice.

What Documents Are Required to Apply for Such a Loan?

The buy to let first time buyer has to prepare several documents. Most lenders will ask for the following:

  • The wage slips for the past 6 months
  • Employment contact
  • Address history including utility bills and bank statements
  • Evidence of the potential rental income of the buy to let. As a rule, the rental income obtained should be somewhere from 125 to 140% of the mortgage but this percentage varies from one lender to another.
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According to an interesting article in Investopedia, “Being a landlord can be a good way to earn real estate income, but it’s not easy or glamorous. In addition to choosing the right property, prepping the unit, and finding reliable tenants, there are always maintenance hassles and headaches.

Who Qualifies for a Buy to Let?

Different lenders have different requirements when it comes to working with first-time buyers for a buy to let. Nonetheless, to qualify individuals should:

  • Earn at least £ 25,000 per year or more
  • Be without any debts and have a good credit score
  • Be within the required age restriction
  • Be able to provide the required documents

According to an interesting article in Investopedia, “Being a landlord can be a good way to earn real estate income, but it’s not easy or glamorous. In addition to choosing the right property, prepping the unit, and finding reliable tenants, there are always maintenance hassles and headaches.

How to Obtain the Best Mortgage?

With so many buy to let loans available on the market, finding the right one is a tricky process. By resorting to the services of skilled brokers, first-time buyers increase their chances of success. Another important aspect they should keep in mind once they secure a great deal is that they might have to deal with unexpected costs such as repairs of the property, void period and so on. 

Individuals who are determined to apply for a buy to let first time buyer should know their responsibilities and they should have the necessary skills to manage the property. Provided they have realistic expectations and they resort to professional advice, chances are their rental investment will be lucrative.



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